Stocks finished lower Monday trading as investors pared risk into the final two trading days of the year amid elevated Treasury bond yields and interest rate risks.
The Dow Jones Industrial Average lost 418.48 points, or 0.97%, to end the session at 42,573.73. The S&P 500 gave up 1.07% to close 5,906.94, while the tech-heavy Nasdaq lost 1.19% to finish the day at 19,486.78.
Updated at 12:35 PM EST
AMD rebound?
Advanced Micro Devices (AMD) shares extended their long second-half decline Monday, and remain one of the only big-name tech stock in negative territory for the year.
Still, Northland analyst Gus Richard sees the stock as "one of our top picks for calendar year 2025" in a note published Monday that reiterated his 'overweight' rating and $175 price target.
AMD shares were last marked 1.5% lower at $123.34 each, a move that extends the stocks' year-to-date decline to around 11.5%.
Related: Analyst revisits AMD stock price target following 2024 slump
Updated at 9:35 AM EST
Red open
The S&P 500 was marked 77 points, or 1.28% lower in the opening minutes of trading, with the Nasdaq down 308 points, or 1.56%.
The Dow fell 477 points while the mid-cap Russell 2000 dropped 22 points, or 1%, to extend its worst monthly performance in more than two years.
S&P 500 Opening Bell Heatmap (Dec 30, 2024)$SPY -1.19% 🟥$QQQ -1.35% 🟥$DJI -1.05% 🟥$IWM -0.80% 🟥 pic.twitter.com/PA6sYz5e9u
— Wall St Engine (@wallstengine) December 30, 2024
Updated at 9:08 AM EST
VIX surge
Stock futures are falling sharply, with the market's key volatility gauge rising nearly 15%, as investors head into the final two trading days of the year on unsteady footing.
Nvidia, the market's key stock, is down 2% in premarket trading, with Tesla down 2.7% and Broadcom (AVGO) down 3.3%.
The S&P 500 is now called 72 points lower while the Nasdaq is called 283 points to the downside and the Dow expected to fall 422 points at the opening bell.
The VIX index, meanwhile, was marked at $18.31, suggesting traders are expecting a daily swing of 1.14%, or 68 points, for the S&P 500 each day for the next 30 days.
With US stock futures currently down 1-1.5% in what has been a notably weak December, a major question facing investors is whether
— Mohamed A. El-Erian (@elerianm) December 30, 2024
Recent selling is simply profit taking/portfolio rebalancing in an illiquid market after a strong 2024 as a whole (e.g., S&P up 25% and the Nasdaq… pic.twitter.com/Xj6WTwE1z2
Stock Market Today
Stocks ended sharply lower on Friday, with megacap tech names leading the three major indexes into the red and hauling the S&P 500 into negative territory for the month. Investors booked profits from the sector's massive performance over the whole year.
Treasury bond yields remained elevated amid the uncertainty tied to the Federal Reserve's rate path and the implications of policies on trade, immigration and taxation planned by President-elect Donald Trump.
Benchmark 10-year-note yields backed off their early May highs in overnight trading but were still changing hands just north of 4.6% heading into the start of the New York session. Two-year notes were pegged at 4.304%.
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The U.S. dollar index, which tracks the greenback against a basket of six global currencies, was marked 0.11% lower at 107.877.
On Wall Street, investors are looking at another split week, and the lower trading volumes that usually come with it, as markets will close on Wednesday for New Year's Day.
Futures contracts tied to the S&P 500, which is now up 25.2% for the year, are priced for a modest 9-point opening-bell decline while those linked to the Dow Jones Industrial Average suggest a 44-point pullback.
Related: Fed interest rate cut bets in 2025 tied to Trump policy wild cards
The tech-focused Nasdaq, which is up 31.4% for the year, is called 20 points lower with Nvidia (NVDA) , Tesla (TSLA) and Palantir Technologies (PLTR) active in early trading.
Boeing (BA) shares were another notable mover, with shares in the planemaker falling 4.5% following the crash of South Korea-based JeJu Air's Boeing 737-800 this weekend in Seoul.
Acting President Choi Sang-mok has called for an inquiry into the crash, the deadliest in the country's history, after all 175 passengers and nearly all of the six-person crew were killed.
More Wall Street Analysis:
In overseas markets, Europe's Stoxx 600 slipped 0.2% in light-volume trading in Frankfurt, while Britain's FTSE 100 edged 0.21% lower in London.
Overnight in Asia, Japan's Nikkei 225 pulled back from a five-month high to finish its last trading day of the year 0.96% lower in Tokyo, leaving the benchmark around 20% higher for the whole of 2024.
The regional MSCI ex-Japan index, meanwhile, was marked 0.29% lower heading into the final hours of trading.
Related: Veteran fund manager delivers alarming S&P 500 forecast
